Of the total branches, 2,036 are in semi-urban areas, while 1,843 are in metro areas. There are a total of 1,312 branches across urban areas and 1,147 in rural areas. "Our addition of 734 branches even during the tough pandemic year has served us well and we are closely tracking the success metrics of per branch profitability and productivity," says the bank.

Sashidhar Jagdishan, MD & CEO, HDFC Bank Ltd, says its balance sheet increased by 18.4% to ₹20,68,535 crore and net profit increased by 18.8% to ₹36,961.3 crore during FY22. “Gross non-performing assets (GNPA) decreased to 1.17% from 1.32%. ROA (average) was at a healthy 2.03% and ROE at a healthy 16.9%. Our commitment to shareholders remained high with a proposed dividend payout of ₹15.50 per equity share of ₹1, which translates to a dividend payout ratio of 23.28% for the financial year ended March 31, 2022," he adds.

On the merger between housing finance major HDFC and the lender HDFC Bank, Jagdishan says it's an opportunity the bank can't afford to miss. "Home loans are an emotional product and bring with them a host of accelerated benefits for the bank. Today the environment for buying a home has changed. RERA (Real Estate Regulatory Authority) has ensured greater transparency in the process. Price corrections in the property market have seen inventories come down. Also, rising incomes mean that home loan EMIs have come down as a percentage of a person’s income," he says.

He adds that only 2% of HDFC Bank customers source home loans through it, while 5% do it from other institutions. "The latter is equivalent to the size of our retail book. Home loan customers typically keep deposits that are 5 to 7 times that of other retail customers. And about 70% of HDFC Ltd.’s customers do not bank with us. All these give us an idea about the size of the opportunity."

He said the enhanced capital position of the bank post the merger means it can take bigger exposures in leading corporates and power the country’s infrastructure build-out. Notably, on April 4, 2022, HDFC and HDFC Bank announced a merger of the two companies, which is subject to various regulatory approvals and will take effect in about 15 to 18 months. While the HDFC Bank stock is trading at ₹1,332.35, down 0.30%, the HDFC stock is down 0.25% at ₹2,168.10 on the NSE today.

HDFC home loan

HDFC Bank to open 1,500-2,000 branches every year till 2027